Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for the reply. This issue is one of the unforeseen consequences of the liquidation of IBRC or at least it was unforeseen on this side of the House, because Members were not aware of it in advance. While this is not a disaster for the credit union sector as a whole, it is a significant issue for the credit unions affected. The Minister has confirmed the involvement of up to 16 credit unions with investments totalling approximately €15 million. Under the deposit guarantee scheme, such credit unions will get back up to €100,000 each and consequently, the credit union sector faces net losses of €13 million to €14 million as a result of the liquidation. They consider themselves very hard done by and they have a legitimate case. Essentially, these were deposits in a State-owned bank and the liquidation of that bank and the losses thereby imposed resulted from a policy intervention by the Government. As the Minister is aware, virtually all other deposits in IBRC were transferred to AIB prior to the liquidation of the bank. I should point out that many individuals also invested in this product. Two cases have been brought to my attention. The first concerned a widow who deposited €200,000, of which she will now lose €100,000. The second was a 69-year-old pensioner who placed his entire savings of €450,000 in the product, of which he will now lose €350,000. This is extremely harsh and my purpose in tabling this question was to achieve finality on this issue. Is the Minister stating it is not possible to intervene or that he will not intervene or that essentially, those concerned will get €100,000, after which they will join the queue of unsecured creditors? I am attempting to get to the end point in this regard.

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